The Telecom Regulatory Authority of India (Trai) has authorized telcos to have at least one tax plan that allows for a 30-day refund guarantee, departing from its long-term cost tolerance policy.
Changes to the 1999 telecommunications order, Trai on Thursday said, “Every telecommunications service provider will offer at least one system voucher, one special price voucher and one 30-day combo voucher.
The clause added that every service provider would also provide at least one system voucher, one special price voucher and one combo voucher that would be renewed on the same day each month.
The regulator has described the move to be customer-friendly and explained that with the amendment, telecom subscribers will have more options to choose the right service delivery and duration. This will also help consumers to make informed tax-related choices.
Trai raised discussion papers in May last year, asking all parties if they should intervene in the matter. The regulator said he had received numerous complaints, including those in which consumers claimed to be charged 13 recharges a year for monthly plans, making them feel cheated.
Explaining the responses of telcos and other stakeholders, the regulator said, “… the views of the participants are clearly different in that the service providers are repeating their preferences by continuing with the current tolerance policy regarding the appropriate tax timing period”.
On the other hand, it said, consumer representative organizations, consumer consulting organizations and individual customers are of the view that in addition to authorizing a 30-day tax payment, a monthly tax payable on the same day of each month should also be provided.
The regulator committed the same offense while quoting international operators. It said Vodafone UK and Verizon in the US have monthly subscriptions no matter how many days a month. “Since the availability of prepaid and charged rates on the same day of each month is a global phenomenon, there is no reason why such a place should not be available to Indian consumers,” Trai said.
The regulator committed the same offense while quoting international operators. It said Vodafone UK and Verizon in the US have monthly subscriptions no matter how many days a month. “Since the availability of prepaid and charged rates on the same day of each month is a global phenomenon, there is no reason why such a place should not be available to Indian consumers,” Trai said.
The telcos objected to the proposal submitted by the regulator for various reasons
Vodafone Idea stated that any change in the current 28 days or 54 or 84 days will disrupt the payment cycle, and requires greater efforts in consumer awareness and learning about the sales channel at the end of the user. Reliance Jio Infocomm, while approving a 30-day recharge, said, “the cost at which a customer is required to recharge on the same day every month at the same fixed rate is technically impossible, as this is primarily a back-paid facility.”
Airtel however argued that a large percentage of paid customers are part of a low-paying group. Therefore, justify the 28-day recharge, “28-day eligibility for such a segment of the community means they are budgeting for their weekly use to help manage their mobile phone costs in a better and more efficient way.”
It further stated that authorizing a formal 30-day official tax deduction or one month requireable tax to be renewed only on the same day of each month, there may be no increase in the amount of the re-paid customer. preferences may not change by presenting such a one-off donation.